Video Commerce Market Size to Reach $2.8 Trillion by 2028: Complete Analysis

Recovering lost sales is essential for businesses focused on maximizing revenue and customer retention. Challenges such as cart abandonment, poor user experience, and inactive customers can reduce conversions.

This guide explores the common reasons behind lost sales and offers actionable strategies to re-engage customers and achieve sustained growth.

Why Do Sales Slip Through the Cracks?

While it may seem simple on the surface, multiple interconnected factors can cause customers to abandon their purchase journey. With 69.57% of carts being abandoned, the impact on businesses is substantial, amounting to an estimated $260 billion in recoverable revenue.

Let's examine the most common reasons why sales slip away.

Shoppers Are Abandoning Their Carts

Cart abandonment represents one of the biggest sources of lost revenue in e-commerce, with 69.82% of shopping carts being abandoned. The primary reasons include:

• Unexpected costs and fees (48%)

Customers often feel blindsided by additional charges at checkout, leading them to abandon their carts. Surprise expenses like shipping fees, taxes, or service charges can erode trust and prompt shoppers to reconsider their purchases.

• Required account creation (24%)

Many prefer a quick and hassle-free guest checkout option; mandatory registration acts as a barrier. The extra time and effort to create an account can deter customers who value speed and convenience.

• Complicated checkout process (17%)

Lengthy forms and multiple steps frustrate users. If the checkout involves too many fields or pages, customers might abandon the process in favor of a simpler experience elsewhere.

• Payment security concerns (18%)

Shoppers may hesitate if the site doesn't appear secure. The lack of visible security badges or SSL certificates can make customers wary of entering their payment information.

A Frustrating Website Experience

Poor website performance directly impacts sales. Factors contributing to a frustrating experience include:

• Slow loading times and delays can lead to lost interest and customers moving on to competitors.
• Confusing navigation, such as a lack of intuitive menus or search functions, can cause frustration and prompt users to leave.
• Poor mobile optimization can result in a poor user experience and lost sales opportunities.
• Technical glitches during checkout, like broken links or error messages, can erode confidence in your site's reliability.

Marketing That Misses the Mark

Even with a perfect website, ineffective marketing can lead to lost sales. Common issues include poorly targeted advertisements. Reaching the wrong audience wastes resources and misses potential customers.

Other than that, failing to provide promotions can result in lost motivation for customers to make a purchase. Special deals encourage shoppers to choose your products over competitors.

Additionally, missing opportunities to recover lost sales by not following up with customers who left items in their carts can also make you lose sales. Timely reminders can prompt customers to return and complete their purchases.

Pricing or Competitors Are Winning the Game

In today's competitive landscape, pricing strategy plays a crucial role.

Customers can quickly find better deals elsewhere if your prices aren't competitive. For example, attractive deals from competitors can draw customers away. Promotions like discounts or free add-ons can make a rival's offer more appealing.

Not being aware of how your pricing and offers stack up against others in the market. Without this insight, you may be underselling or overpricing your products.

Inventory and Availability Issues

Poor inventory management can frustrate customers and lead to lost sales. This can include frequent product stockouts. Frequent out-of-stock notices can damage your reputation for reliability.

Uncertainty about product availability may deter customers. If stock levels aren't displayed, shoppers might assume items are unavailable. Other than that, customers may be unwilling to wait for items to become available again. Delays can push shoppers to find alternatives from competitors.

Poor Post-Purchase Experience

The sale doesn't end at checkout. A poor post-purchase experience can prevent future sales and damage customer relationships:

• Unexpected shipping delays: Lead to dissatisfaction, especially if customers were expecting quick delivery. Delays can tarnish your brand's reputation for reliability.
• Unclear delivery times: Create uncertainty and frustration. Without accurate estimates, customers can't plan for receipt of their goods.
• Complicated return policies: Discourage customers from buying due to fear of facing difficulties if they need to return items. Hassle-free returns are a significant factor in purchasing decisions.
• Inadequate customer support: Leaves customers feeling unsupported, reducing the likelihood of repeat business. Prompt and helpful service is essential for customer satisfaction.

E-commerce sites can gain a 35.26% increase in conversions through better checkout design alone. The key is identifying which issues are most impacting your business and addressing them systematically.

How to Win Back Lost Sales: 8 Strategies That Work

Recover lost sales in E-commerce, but it isn't about implementing just one strategy—it's about creating a comprehensive approach that addresses various abandonment points. By combining these strategies and continuously monitoring their effectiveness, you can significantly reduce lost sales and improve customer retention.

1. Get Shoppers Back to Their Carts

Cart abandonment affects shopping carts, but you can recover these lost sales with proven techniques:

• Send targeted recovery emails within 24 hours: Remind customers of their incomplete purchases. Timely follow-ups keep your brand top-of-mind and encourage shoppers to return while interest is still high.
• Include clear product images and details: Re-engage their interest by showcasing items left in the cart. Visuals can rekindle desire and help customers recall why they wanted the product.
• Offer limited-time discounts or free shipping incentives: Provide the extra push needed to complete the purchase. Special offers can overcome hesitations about price or value.
• Use personalized messaging based on browsing history: Make communications more relevant and persuasive. Tailored content shows customers you understand their interests, increasing the likelihood of conversion.

2. Make Checkout a Breeze

With 21% of customers abandoning purchases due to complicated checkout processes, simplification is crucial:

• Implement a one-page checkout: Reduces friction by minimizing steps. Streamlining the process can decrease abandonment and improve user satisfaction.
• Enable guest checkout options: Allows customers to buy without creating an account. Eliminating mandatory registration removes a common barrier to purchase.
• Ensure mobile optimization: Critical given the 85.65% mobile abandonment rates. A seamless mobile experience caters to the growing number of smartphone shoppers.
• Display clear progress indicators: This helps customers know where they are in the process. Understanding the remaining steps reduces uncertainty and frustration.
• Show all costs upfront: Avoid surprise fees that deter buyers. Transparency builds trust and encourages the completion of the purchase.

3. Remind Customers with Retargeting

Strategic retargeting effectively brings back hesitant shoppers:

• Use dynamic product ads: Show items customers viewed to remind them of their interest. Personalized ads can re-engage potential buyers who leave your site.
• Implement cross-platform retargeting: Extend your reach across social media and display networks. Multiple touchpoints increase the chances of recapturing attention.
• Set frequency caps: Avoid ad fatigue by limiting how often ads are shown. Responsible retargeting respects customer experience and maintains brand image.
• Create personalized ad content: Increase engagement with messaging based on browsing behavior. Customized messages are more likely to resonate and prompt action.

4. Reconnect with Inactive Customers

Reactivate dormant customers through targeted engagement:

• Send personalized "we miss you" emails: Special offers entice customers to return. Showing appreciation can rekindle interest in your brand.
• Create win-back campaigns: Target customers who have been inactive for several months to revive their interest. Tailored promotions or updates on new products can draw them back.
• Implement loyalty programs: Encourage repeat business with clear value propositions. Rewards for continued patronage can strengthen customer relationships.
• Use customer purchase history: Suggest relevant products for personalized recommendations. Offering items that align with past interests increases the likelihood of conversion.

5. Step Up Customer Support

Proactive customer service prevents abandonments:

• Offer live chat during crucial shopping moments: Allows customers to get immediate assistance. Real-time support can address concerns before they lead to abandonment.
• Provide multiple support channels: Email, chat, phone—give customers options to reach out. Accessibility improves customer satisfaction and trust.
• Display clear contact information throughout the site: Makes it easy for customers to find help. The visibility of support options encourages users to seek assistance when needed.
• Implement chatbots for 24/7 basic support: Ensure customers can get answers anytime. Around-the-clock service caters to global audiences and different time zones.
• Address common questions proactively: Keep customers engaged by resolving issues before they cause abandonment. FAQs and informative content can preemptively alleviate concerns.

6.  Create FOMO to Drive Action

Using urgency and scarcity motivates customers to act:

• Show real-time stock levels: Indicate limited availability for popular items. Awareness of low stock can prompt quicker purchasing decisions.
• Display limited-time offers with countdown timers: Create a sense of urgency. Visual timers emphasize the fleeting nature of a deal.
• Highlight "selling fast" indicators: Encourage quick decisions for in-demand products. Social proof suggests high value and popularity.
• Show the number of other shoppers viewing an item: Adds social proof and competition. Knowing others are interested can influence customers to buy sooner.

7. Automate to Keep Customers Engaged

Leveraging automation provides consistent engagement with customers:

• Set up triggered emails based on behavior: Deliver timely, relevant messages. Automated responses to specific actions keep communication personalized and efficient.
• Create automated cross-sell recommendations: Introduce customers to additional products they may like. Suggesting complementary items can increase cart value.
• Implement price drop alerts for wished items: Notify customers when prices decrease. Informing shoppers of savings opportunities encourages purchases.
• Use smart segmentation: Allows targeted messaging based on profiles and actions. Grouping customers by behavior enhances the relevance of your communications.

For best results, track key metrics like recovery rate, customer lifetime value, and return on investment for each strategy. This data-driven approach refines your tactics and focuses on what works best for your specific customer base.

8. Enhancing Product Pages with Engaging Content

Your product pages are where purchasing decisions are made or lost. Enhance them by:

• Including high-quality images: Show products from multiple angles with zoom features for detailed examination. Visual appeal can significantly influence buying decisions.
• Providing comprehensive product descriptions: Highlight key features and benefits in a scannable format. Detailed information helps customers feel confident in their choices.

Adding interactive elements

• Product demonstration videos: Showcase items in use. Interactive videos can illustrate functionality and inspire trust.
• 360-degree product views: Offer a complete look. Immersive experiences engage customers more deeply.
• Usage tutorials: Educate customers on getting the most out of products. Helpful content adds value and can differentiate your brand.
• Size guides or comparison tools: Help customers make informed decisions. Tools that reduce uncertainty can decrease return rates and increase satisfaction.

Actively manage online reviews on platforms like Google My Business, responding to feedback to demonstrate engagement with your community. This ongoing dialogue builds trust and prevents sales loss by addressing concerns before they become obstacles.

Document findings to create a feedback loop that continuously improves the recovery process. Each optimization cycle builds on previous learnings, creating increasingly effective strategies over time.

Put your commerce in motion. Find out how Firework can power your business forward. Request a demo today at Firework.

FAQ’s

1. How to solve cart abandonment?

To solve cart abandonment, simplify the checkout process, enable guest checkout, and provide transparent pricing with no hidden fees. Use automated cart recovery emails, offer incentives like discounts or free shipping, and ensure the website is mobile-friendly and secure.

2. What is the abandonment rate for e-commerce?

The average cart abandonment rate for e-commerce is around 69.8%, meaning nearly 7 out of 10 customers leave without completing a purchase. Factors like unexpected costs, complicated checkout processes, and lack of trust in payment security contribute to this high rate.

3. What are lost sales in business?

Lost sales in the business refer to potential revenue missed due to customers leaving without completing a purchase. Common reasons include out-of-stock products, cart abandonment, poor customer experience, or pricing issues.

4. How to calculate lost sales in retail?

Lost sales in retail can be calculated by estimating the difference between potential and actual revenue. Formula:

Lost Sales = (Expected Revenue - Actual Revenue)

For example, if expected revenue is $10,000 and actual revenue is $8,000, lost sales are $2,000. Analyzing inventory issues or customer behavior can refine this estimate.

5. How to recover abandoned carts?

To recover abandoned carts, send automated follow-up emails with reminders or incentives like discounts. You can also use retargeting ads to re-engage customers and simplify the checkout process to reduce friction.